A group of Democratic senators, led by Amy Klobuchar, has sent a letter to the Federal Trade Commission (FTC) and the Department of Justice (DOJ) urging them to investigate whether AI tools that summarize and regurgitate online content, such as news and recipes, may be engaging in anticompetitive practices. The senators argue that these AI features are unfairly favoring dominant online platforms, such as Google and Meta, by allowing them to generate billions of dollars in advertising revenue from original content created by others.
The letter claims that while traditional search results and news feeds link users to the original publisher’s website, AI-generated summaries keep users on the original search platform, where the platform can profit from advertising and data collection. Moreover, some AI features misappropriate third-party content and pass it off as novel content generated by the platform’s AI. This raises concerns about the competitive market for content and advertising revenues, as publishers who opt out of being indexed for search may lose their ability to profit from their original content.
The senators are asking the FTC and DOJ to investigate whether these new methods are a form of exclusionary conduct or an unfair method of competition in violation of antitrust laws. However, the FTC may have its work cut out for it, as the bar for anticompetitive behavior is high, and it would need to be shown that the AI makers have overwhelming market power and are using it in ways forbidden by law.
The letter is part of a paper trail that the senators are leaving as they prepare to propose new legislation to address these concerns. If the FTC and DOJ find they cannot act, the senators may propose a new law to give them the authority to take action. The letter was co-signed by seven Democratic senators, and the issue is likely to be a key talking point in the upcoming election cycle.
